For an entrepreneur to make his business a profitable venture, location of his business matters a lot. Businesses must be located at a place close to the market, labour, raw materials and a place that offers agglomerative tendencies.
In the world generally, it is statistically proven that only 10 percent of business survive after ten years of creating them; and part of the reasons why 90 percent of businesses created pack off before ten years of creating them has to do with the location of such businesses.
This article highlights the best five cities suitable for business location in Nigeria below:
Nigeria’s centre of excellence and commercial hub claims the number one spot when it comes to business location in Nigeria. Lagos has a population of 20 million inhabitants, as such, it offers a vast market for any business an entrepreneur has in mind to locate. Besides the population of Lagos, it possesses more developed business infrastructures compared to other parts of Nigeria.
Abuja, the nation’s Federal Capital Territory has a lower population than that of Lagos but its population increases by at least 35% every year and if projection is anything to go by, the city will soon catch up with Lagos in terms of population. Abuja is the city with the highest Per Capita Income in Nigeria. The highest Per Capita Income means that Abuja residents have the highest purchasing power in Nigeria so entrepreneurs can tap into this by locating their business there.
Despite the security unrest in the city, Kano is the commercial nerve centre of the northern part of Nigeria. Kano ranks second as far as population is concerned in Nigeria and is one of the fastest growing cities in Africa. The city offers a market for all types of products and major raw materials are available in the city and these rank the city 3rd as business location choice in Nigeria.
Number four city is the Rivers State Capital. Port Harcourt is one of the fastest growing Per Capita Income cities in Nigeria and the state houses some many expats which can be targeted by entrepreneurs as a market for their products. Statistics has it that a prudent entrepreneur can realise his business set up cost between 6 months and two years in this city.
The densely populated capital city of Oyo State ranks as one of the most populated cities in Nigeria. It is also one of the biggest cities in Nigeria. All the location factors tend to favour this city and besides that, the Governor of Oyo State in recent times made effort to woo foreign investors into the city. It is expected that the influx of foreign investment into the city will bring about vertical integration between local businesses and foreign businesses. In view of the above, businessmen need to be part of this trend by locating their businesses in the city of Ibadan.